Form 1099-K comes from the companies that settle your electronic payments, and the IRS gets a copy. Card processors report your payment card sales no matter how many or how small. Payment apps and online marketplaces report when you receive over $20,000 in more than 200 transactions in the year.
The form shows the gross amount of payments, without adjustments for fees, credits, refunds, shipping, cash equivalents or discounts. It will not match your net deposits, so reconcile it with your books before you file.
Funders sometimes ask for 1099-K forms to confirm card volume, especially when your bank deposits mix card sales with other income. Keep them with your tax records so they are easy to send.
Sources
- Understanding your Form 1099-K — Internal Revenue Service (checked 2026-09-30)
- Form 1099-K FAQs: General information — Internal Revenue Service (checked 2026-09-30)